Bridging loan (překlenovací úvěr)
A bridging loan finances a transitional period until money arrives from another source. In building savings (stavební spoření) it is a loan granted before the right to a regular building savings loan arises (Act No. 96/1993 Coll.). Banks also use the term for buying a new home before selling the old one: you usually pay only interest meanwhile and repay the principal from the sale. Compare the options in bridging loan or mortgage.
Example
A family owns a debt-free flat worth CZK 4,000,000 and is buying a house. Until they sell the flat, they borrow CZK 4,000,000 as a bridging loan secured by both properties. At 5.00 %, they pay interest only, roughly CZK 16,700 a month. After selling the flat for CZK 4,000,000 they repay the loan in one go; if the sale dragged on for a year, the interest would cost them around CZK 200,000.
In practice
Estimate realistically how long the sale will take, and find out whether the bank will convert the loan into a mortgage or want it repaid if the property is still unsold at the deadline. With building savings, check how much is still missing to qualify for a regular loan. Plan around a price the market has actually confirmed, not the one you hope to get.
How it differs
A pre-mortgage loan is provided while the buyer is not yet the owner and no lien can be registered, and it later converts into a mortgage. A bridging loan instead waits for the proceeds of a sale or for entitlement under building savings.
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